Many boomers are turning to annuities, and leaving nothing behind. (Shutterstock)

(Newser)
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Now that the financial crisis has destroyed so many nest eggs, many soon-to-be retirees are buying annuities and leaving their kids to fend for themselves, the Wall Street Journal reports. Annuities turn a lump-sum payment into a guaranteed income for life. That’ll provide more peace of mind than living off investment income in an uncertain market, but it leaves nothing for the inheritance.

Metlife, for example, will happily turn a 67-year-old's $1 million into a $75,000 annual income. Buyers who die early subsidize those who stick around for decades. But annuities also aren’t a great deal right now, says one financial planner, because interest rates are low, which hurts returns. Inflation is a problem, as is the risk that the insurer selling the annuity will go belly-up; state backup pools won’t necessarily protect your whole policy.

I don't feel like I have a obligation to do without just so the kids can have a payout. As with this recession and the tanking of the market it shows that depending on the stock market returns can be very risky. The only thing we asked of our parents was that they make provisions for their burials and not leave debts for us to cover. We didn't get very much at all when they died and didn't expect it. We will make our own way and try not to be a burden on our kids if possible. I expect the kids to make their own way also and not expect a paycheck from my work.

Reader62719514

Jul 11, 2009 11:37 AM CDT

Sorry, UrUndertaker, but you've got to go back farther than GW. There is no particular party of administration favorites to blame when it comes to greed and corruption at all levels of our society.

Kookey90

Jul 11, 2009 10:37 AM CDT

Karl, I agree., Best thing to do is to take care of yourself and your spouse. If anything is left over after you both pass on then the kids, if they are deserving, should have it.